According to ICICI Bank despite a 49 percent increase in net profit, gross NPA dropped by 3.41 percent

The gross non-performing asset (NPA) ratio of ICICI Bank, India’s second-largest private lender, was reported to have dropped from 5.15 percent in the same quarter last year to 3.41 percent as of June 30, 2022. It also stated that its net profit for the quarter ending June 30, 2022 (Q1FY23) climbed by 49.59% to 6,904.94 crore from 4,616.02 crore during the same period the previous year. The bank’s gross NPA on March 31, 2022, was 3.60 percent. According to ICICI Bank, its net NPA ratio dropped from 0.76 percent on March 31, 2022, and 1.16 percent on June 30, 2021, respectively, to 0.70 percent as of June 30, 2022.

In comparison to net withdrawals of 489 crore in the fourth quarter of 2021–22 and net inflows of 3,604 crore in the first quarter of 2021–22, there were net contributions to gross NPAs of 382 crore during the first quarter of the current fiscal year. Gross NPA inflows were $5,825 crore in Q1 2022–23 as opposed to $4,204 crore in Q4 2021–22. NPA recoveries and upgrades in Q1 FY23, excluding write-offs and sales, were $5,443 crore, up from $4,693 crore in Q4 of 2021–22. Gross NPAs written off in the first quarter of FY23 were $1,126 crore, and the provisioning coverage ratio for NPAs was 79.6 percent, according to ICICI Bank’s regulatory filing.

“Excluding NPAs, the total fund based outstanding to all borrowers under resolution as per the various extant regulations/guidelines declined to ₹7,376 crore (US$ 934 billion) or 0.8% of total advances at June 30, 2022 from ₹8,267 crore (US$ 1.0 billion) at March 31, 2022. The Bank holds provisions amounting to ₹2,290 crore (US$ 290 million) against these borrowers under resolution, as of June 30, 2022. In addition, the Bank held contingency provisions of ₹8,500 crore (US$ 1.1 billion) at June 30, 2022. The loan and non-fund based outstanding to performing borrowers rated BB and below reduced to ₹8,209 crore (US$ 1.0 billion) at June 30, 2022 from ₹10,808 crore (US$ 1.4 billion) at March 31, 2022,” ICICI Bank said in a regulatory filing.

Core operating profit, which is defined as profit before provisions and taxes excluding treasury income, rose from Rs. 8,605 crore in the quarter ended June 30, 2021 to Rs. 10,273 crore in Q1-2023, a 19% year-over-year rise. According to ICICI Bank, core operational profit rose by 21% year over year, excluding dividend income from subsidiaries and associates. The bank’s net interest income (NII), which was Rs. 10,936 crore in Q1 2022 and Rs. 13,210 crore in Q1 2023, increased by 21% year over year. The net interest margin increased to 4.01 percent in Q1-20223 from 3.89 percent in the same quarter the year before. Treasury income was not included in the bank’s non-interest income, which climbed year over year by 25% to 4,629 crore in Q1-2023 from 3,706 crore in Q1-202.

Separately, the profit after tax rose from 4,616 crore in Q1 2012 to 6,905 crore in Q1 2023, an increase of 50% year over year. From Q1-2022 to Q1-2023, the profit before tax climbed by 52 percent year over year to $9,165 crore. Consolidated assets climbed by 13 percent from 1,536,731 crore in the same quarter of last year to 1,742,777 crore on June 30, 2022.